Abu Dhabi National Oil Company subsidiary Adnoc LNG has kicked off the chase for carrying out key engineering work on a giant liquefied natural gas export terminal in the United Arab Emirates.
Several sources familiar with the development told Upstream that Adnoc LNG plans to construct a 9.6 million tonnes per annum export facility at Fujairah, able to cater to the markets of India, Pakistan, China, Japan and other Asian countries.
The company recently sought expressions of interest from several international engineering contractors for conceptual studies and for front-end engineering and design work on the surface facilities required at the huge LNG terminal.
One source said the project could be worth billions of dollars and would involve two giant LNG processing trains, storage tanks, a jetty and other associated facilities.
Adnoc declined to comment regarding the Fujairah LNG project.
The company’s chief executive, Sultan Ahmed al Jaber, has already highlighted the UAE’s ambition to emerge as a key LNG exporter in the coming years, on the back of several gas-focused upstream developments in the emirate.
Sustained higher oil & gas prices, along with record prices of spot LNG, are encouraging many Middle East producers to step up their plans and preparations to boost their gas producing capacity.
Abu Dhabi’s LNG ambitions could catapult UAE forward to become a major LNG exporter in the region, competing with its Persian Gulf neighbour Qatar, a world leader in LNG exports.
Adnoc currently has the capacity to produce about 11 billion cubic feet per day of natural gas and around 1.3 Bcfd of sour gas, with the state-owned giant said to be executing multiple gas-based developments to scale up its capacity.
The company is spending close to $20 billion dollars on large sour gas developments such as Hail & Ghasha and Dalma.
The emirate is also expanding the potential of its huge Shah gas project, developing the Umm Shaif gas cap reservoir and expanding into unconventional gas.
Together, these projects will deliver over 3 Bcfd, "enough to power several million homes”, a company spokesperson recently told Upstream.
More than 10 leading engineering firms are said to be among those that recently received EoI documents from Adnoc, another source said.
Those include JGC, Technip Energies, McDermott International, KBR, Chiyoda, Bechtel, Fluor, Samsung, Saipem, Wood and WorleyParsons, project watchers said.
A formal tender process for the pre-FEED and FEED project is likely to start next month, and Adnoc is keen to fast-track the engineering project, a second source said.
Scope on offer
The facilities include an LNG plant with a total capacity of 9.6 million tpa that would involve two trains each with 4.8 million tpa capacity, Upstream understands.
The liquefaction plant will include process facilities, flare and utilities, project watchers said.
In addition, LNG storage tanks, an export jetty — with an option for bunkering — and other associated facilities are likely to be involved.
The workscope also includes the laying of a new 52-inch gas pipeline from Habshan to Fujairah with capacity to handle up to 2 billion cubic feet per day.
Adnoc LNG already produces about 6 million tpa of LNG from its facilities on Das Island off the coast of Abu Dhabi.
The company is owned by Adnoc with a 70% stake, with Mitsui & Co holding 15%, BP another 10%, while TotalEnergies has 5%.
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